Indias Financial Sector Spins An Upward Spiral

Special Feature On Financial Sector

With the Indian government implementing a number of reforms to liberalise, regulate and improve this industry, Bhavya Rathod explains how the country’s economy is currently among the most dynamic in the world due to its thriving banking and insurance industries 

India has a diverse financial sector that is rapidly expanding, both in terms of strong growth of the existing financial services and new entrants into the market. Commercial banks, insurance companies, non-banking financial companies, cooperatives, pension funds, mutual funds and other smaller financial entities make up the sector. Of late, the banking regulator has allowed for the formation of new entities such as payment banks, thus diversifying the types of entities operating in the sector. However, the Indian financial sector is dominated by commercial banks, which account for more than 64 per cent of the total assets held by the financial system.